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TCO A, B H - Accounting Problem

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(TCO H) Al and Amy file a joint return for the 2007 tax year. Their adjusted gross income is $80,000. They had net investment income of $9,000. In 2007, they had the following interest expenses: Personal credit card interest $4,000;
Home mortgage interest $8,000; and
Investment interest (on loans used to buy stocks) $10,000.

What is Al and Amy's interest deduction for the 2007 tax year? ( 1- $17,000
2- $8,000
3- $12,000
4- 18,000

(TCO B) Charitable contribution deductions for Capital Gains Property made by individuals without a reduction for long-term capital gains to public charities are limited to:
1- 50% of AGI
2- 40% of AGI
3- 30% of AGI
4- 20% of AGI

(TCO A) The following taxes were paid by Tim: Real estate taxes on his home: $1,000; State income taxes: $900; and State gasoline tax (personal use of automobile): $150.

In itemizing his deductions, what is the amount that Tim may claim as a deduction for taxes?
1- $2,000
2- $3,050
3- $0
4- $1,900

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Solution Summary

The solution computes accounting problem of Questions TCO A, TCO B & TCO H.